Amid a worsening electricity deficit that has resulted in average households experiencing 18-hour blackouts, the need for alternative energy sources cannot be overemphasized.
After realising the efficacy of accelerating the deployment of solar plants to the country's energy mix, stakeholders in the insurance and pensions industry have invested in a solar power project located in Mashonaland West province, which has confirmed its status as not only the breadbasket of Zimbabwe, but the energy basket as well.
Already, the province is home to the country's foremost hydroelectricity generation plant at Kariba.
Now, through significant investment by the National Social Security Authority (NSSA) and Old Mutual Limited life has been breathed into a new solar power plant called Centragrid Nyabira Solar PV Park.
The independent power producer is licensed to own, finance, construct, and operate a 25MW solar power plant and its associated transmission facilities at Nyabira.
NSSA and pan-African financial services group Old Mutual put a combined investment of $30 million in the solar power project.
It is, therefore, a refreshing reality that the pensions and insurance industry is contributing significantly towards the country's socio-economic growth with players embarking on the transformative infrastructural development sitting on 50 hectares of land.
Minister of State for Provincial Affairs and Devolution for Mashonaland West, Marian Chombo hailed the milestone infrastructural development that consolidates the province's tag as a "power house."
"Mashonaland West is a power-producing province, and we have set the conditions for investors to come and invest in the energy sector. We need to produce more power to meet our energy needs," said Chombo.
"There is still scope for more projects to ensure Zimbabwe has adequate energy for domestic consumption and surplus for export. We are particularly impressed by the solar power plant in our province."
The expansion of the solar farm and its associated transmission facilities followed an impact investment strategy of Old Mutual Limited and NSSA that was announced in December 2021.
The power plant is located at the 35km mark along the Harare-Chirundu highway, and it is now feeding into the grid, thanks to local pension fund, NSSA, as well as the investment arms of Old Mutual for helping make the project a reality. It is now the second largest utility-scale plant in Zimbabwe.
Centragrid plant manager, Engineer Tariro Muka said the power from the solar panels feeds into the national grid through the 88KV Norton to Mazowe powerline, reiterating the need to embrace clean energy.
"Considering issues of global warming and climate change, it is important for us to go green. That will be a significant step in reducing global warming," said Muka.
Energy expert, Munashe Ngwerume told NewZimbabwe.com that locally-funded solar power plants could help alleviate the country's electricity generation shortfall in a short space of time.
"Solar plants of this size can be built fairly quickly and can be up and running in under a year. The biggest challenge experienced by independent power producers in Zimbabwe is lack of funding.
"With foreign funding having proven to be difficult to secure for most developers for over a decade due to several factors, including the country's high risk profile, a locally-funded model based on the learnings from Centragrid's first 25MW plant as well as the government putting its own resources into the mix as it did with the accelerated road rehabilitation project, could change the game for local IPPs," said Ngwerume.
At current pricing, Ngwerume emphasised, going solar is attractive right now due to the incredible reduction in the price of solar panels.
"A 25MWp solar PV plant can now probably be constructed for about $20 million in this part of the world at current prices.
"This cost includes all the development, permitting, and construction costs up to the Commercial Operation Date (COD)...Zimbabwe has 10 provinces, they could even build one plant in each province for easier integration into the grid and also spread the solar love around the country equitably.
"Adding four of these 25MW plants to each province would get 1GWp of good installed nameplate solar capacity in a very short time."
Ngwerume said Zimbabwe needs cheaper, faster-to-build electricity generation plants hence the Centragrid solar PV project aligns with government's efforts in scaling up renewable energy capacity
Government has targeted to generate 16.5% of total electricity or 1,100 MW from renewables by 2025, and 26.5 % of total generation or 2,100 MW from renewables by 2030.
The investment comes at a time when Zimbabwe faces a power deficit of around 600 MW to 700 MW, according to energy estimates by authorities. This deficit is due to severe climate changes that lowered the dam levels at the country's largest electricity generation station, the Kariba South Hydro Power Plant.
Centragrid founder and managing director, Victor Utedzi was recently quoted in the media expressing pride in the project, highlighting the importance of local investment in driving Africa's energy future.
"This flagship project stands as a testament to what can be accomplished by local investors in Africa in the pursuit of alleviating energy shortages," Utedzi said.
The Nyabira solar plant is one of the first IPPs to connect to Zimbabwe's national grid, and its expansion further cements its role as a key player in the country's renewable energy landscape. The increased capacity will contribute to the national grid, offering much-needed relief to Zimbabwe's energy supply challenges.
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The success of this project is seen as a model for other renewable energy initiatives across the country, with hopes that more locally funded projects will follow suit to reduce dependency on external capital and improve energy security.
Utedzi said the project was critical to Zimbabwe's intention to add about 4 000 MW of electricity by 2030, given the growing demand for electricity.
He acknowledged there is "a lot of demand for electricity in new industries" coming up, taking advantage of favourable investment conditions created by President Emmerson Mnangagwa's government.
Mining, agricultural, manufacturing and tourism sectors are growing significantly and demand more electricity.
"So, we need to add more electricity to this country and Centragrid is that first step of the large-scale renewable energy projects that are adding to electricity generation in Zimbabwe," said Utedzi.
Liu Yachen, the Sinohydro project manager for the solar project said at the peak of the project, employed about 400 locals and about 10 Chinese experts.
